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Mohd Suhaimi Fariz

MAS Privatisation

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On 10/27/2019 at 3:47 PM, kandiah k said:

To turn around MH need to re-fleet and re-fleet take about 3 years, and who is going to bare the losses of about RM 3bn for this interim 3 years?

On 10/25/2019 at 6:09 PM, jahur said:

Wonder if consolidating garuda and thai with mab would help. But then the other two also have corruption issues for decades. We havent even gotten into Lion air. This airline sabotage Airasias expansion and is flying their planes with limited frequencies at a loss. Its been also rumored the ceo of lion air has been using a lot of black money to get permits around. Free market or not it doesnt look fair to smaller companies.

If ceo of lion air is involve in black money, boeing and u.s banks wouldn't have deal with him.

On 10/25/2019 at 2:03 PM, Craig said:

Many many moons ago, a LHR-KUL-SYD/MEL ticket cost almost the same as a LHR-KUL ticket with free stopovers in KUL. So my plan was always to buy a ticket to Australia with 2 stopovers in KL. 

I am not aware that Malaysia does not have enough cheap foreign workers, do you?

So these regional flights you are speaking of, to connect to MH 09:00 bank, they need to depart before 06:00 to get in around 07:00 (or even earlier since Malaysia is GMT +8 whilst most neighbors are GMT +7), yes? Which business traveler don't value time for a regional flight that they'll take an even earlier morning flight with a connection? Not many business pax is going to fly SIN-KUL-BKK or BKK-KUL-CGK. And in case you are wondering, MH does have early morning departures from SIN, BKK, CGK, MNL, HKG (the major business cities around the region I'd say) and you can guess why they have a RON aircraft at those stations even at HKG/SIN with exorbitant parking fees and not others (e.g. SGN, PNH etc.). 

MH need not limit to BKK, SIN and CGK alone, KNO, HKT, HDY, BTJ, PKU, BWN, KBV, etc are source of pax. If MAHB is efficiency, these regional could arrive KUL just before 8am. However, if market dictate, MH could shift bank of departure to 1000 hour for a more friendly departure time. LH, KL, BA have their layover regional to arrive FRA, AMS and LHR at about 0900 hour.

MH like many Malaysians tend to place the cart in front of the horse. If the route is financially feasible, extra cost on layover, parking fees would be taken care of. A reason why FSC like LH, KL, BA and AF are still surviving.

 

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7 hours ago, KK Lee said:

MH need not limit to BKK, SIN and CGK alone, KNO, HKT, HDY, BTJ, PKU, BWN, KBV, etc are source of pax. If MAHB is efficiency, these regional could arrive KUL just before 8am. However, if market dictate, MH could shift bank of departure to 1000 hour for a more friendly departure time. LH, KL, BA have their layover regional to arrive FRA, AMS and LHR at about 0900 hour.

Yields are poor for these passengers.

If the yields are so great, they'd done it already.

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8 hours ago, KK Lee said:

MH need not limit to BKK, SIN and CGK alone, KNO, HKT, HDY, BTJ, PKU, BWN, KBV, etc are source of pax. If MAHB is efficiency, these regional could arrive KUL just before 8am. However, if market dictate, MH could shift bank of departure to 1000 hour for a more friendly departure time. LH, KL, BA have their layover regional to arrive FRA, AMS and LHR at about 0900 hour. 

I don't see where you are going here, MH loads are fair to in comparison with industry standards. In fact the main chunk of morning departures are between the 9am-11am band. The departure congestion speaks for itself and its not only out of KUL that we are talking about, its the same in SIN, BKK and the other major hubs nearby (morning wave so to speak). 

At current state of fleet number vs frequency, it seems MH B737s utilisation is stretched to the limit. Noticed its quite common to see their A330s to sub the B737s on BKK, SIN, CGK, and some domestic runs lately. 

The issue in MH all boils down to yield. If you want to say MH is not exploring new route options, well at least we are seeing SUB frequency have been increased, PKU and SOC back on their network. 

Rule of the game here is yields and MH is not the only airline struggling in that arena. 

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35 minutes ago, Pall said:

I don't see where you are going here, MH loads are fair to in comparison with industry standards. In fact the main chunk of morning departures are between the 9am-11am band. The departure congestion speaks for itself and its not only out of KUL that we are talking about, its the same in SIN, BKK and the other major hubs nearby (morning wave so to speak). 

At current state of fleet number vs frequency, it seems MH B737s utilisation is stretched to the limit. Noticed its quite common to see their A330s to sub the B737s on BKK, SIN, CGK, and some domestic runs lately. 

The issue in MH all boils down to yield. If you want to say MH is not exploring new route options, well at least we are seeing SUB frequency have been increased, PKU and SOC back on their network. 

Rule of the game here is yields and MH is not the only airline struggling in that arena. 

Agree that MH is struggling with yields. That is why it it vital that they control their costs and allocate their budgets for the right purposes. 

Another factor that is hampering MAB operations is flight and cabin crew shortages. MAB must focus on solving these shortages if it is to be able to run the airline more effectively.

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On 10/29/2019 at 8:37 AM, Pall said:

I don't see where you are going here, MH loads are fair to in comparison with industry standards. In fact the main chunk of morning departures are between the 9am-11am band. The departure congestion speaks for itself and its not only out of KUL that we are talking about, its the same in SIN, BKK and the other major hubs nearby (morning wave so to speak). 

At current state of fleet number vs frequency, it seems MH B737s utilisation is stretched to the limit. Noticed its quite common to see their A330s to sub the B737s on BKK, SIN, CGK, and some domestic runs lately. 

The issue in MH all boils down to yield. If you want to say MH is not exploring new route options, well at least we are seeing SUB frequency have been increased, PKU and SOC back on their network. 

Rule of the game here is yields and MH is not the only airline struggling in that arena. 

 

On 10/29/2019 at 7:04 AM, Mohd Suhaimi Fariz said:

Yields are poor for these passengers.

If the yields are so great, they'd done it already.

The facts remain MH is losing a few hundred millions RM every year in this few years and there is no end in sight.

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A good move for SQ because SIN slots are limited and they can deploy them for more higher yielding routes.

For MH, it may mean that they can upgrade their equipment to widebody so that they can carry more pax with their available slots.

Both airlines will also benefit from being able to have a better KUL-SIN service without overlapping frequencies. This will provide better feed to their code share and other flights.

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The problem is MH current widebody (A350, A330-200/300) are working very hard with no spare going around. Perhaps they can give leasing companies a call for few more A332/A333. Lease rate should be dirt cheap now......

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10 minutes ago, JuliusWong said:

The problem is MH current widebody (A350, A330-200/300) are working very hard with no spare going around. Perhaps they can give leasing companies a call for few more A332/A333. Lease rate should be dirt cheap now......

Additional A332 seems to be a good fit for now. Not too big, and it has the range. 

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Yes, there are many A330s coming off lease as B789s replace them. But finding those with PW engines are a bit more difficult.

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8 hours ago, flee said:

A good move for SQ because SIN slots are limited and they can deploy them for more higher yielding routes.

For MH, it may mean that they can upgrade their equipment to widebody so that they can carry more pax with their available slots.

Both airlines will also benefit from being able to have a better KUL-SIN service without overlapping frequencies. This will provide better feed to their code share and other flights.

From what I read, it seems like MH Group is placing its codes on SQ flights to Europe, South Africa (ZA makes sense) plus other beyond (unnamed) destinations. SQ Group on the other hand is placing its code on MH flights within Malaysia. I read it as MH can funnel their Europe bound traffic via SIN/SQ where as SQ will funnel their Malaysia bound traffic via KUL/MH.

If anything, the up gauge will only be on KUL-SIN for MH/SQ (SQ is not placing its code on MH services beyond Malaysia). MH-SQ frequencies don't really overlap that much for either KUL-SIN or SIN-KUL (the bulk of it is either early morning or late afternoon/early evening in both directions for the business market between the two cities as well as connection banks on both ends). If you combine all carriers operating between KUL and SIN (TR, ,OD, AK, 3K etc.), there's a flight almost every 15 minutes or so between the two cities.

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I have a feeling this is going to benefit SQ more than it will benefit MH. Funnelling our Europe bound passengers via Dubai (mueller time) and now vis Singapore as well. 
 

 

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2 hours ago, Izanee said:

I have a feeling this is going to benefit SQ more than it will benefit MH. Funnelling our Europe bound passengers via Dubai (mueller time) and now vis Singapore as well. 

This more or less means MH won't be flying its own metal to Europe anytime soon. What little Europe bound pax they may have will be routed through their code share partners. It is still better to have this business than not to have it at all.

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Seems like its going beyond codeshare. I guess MH would want to have SQ to send more aircraft to KUL for MRO as well. Considering its a wide range partnership agreement covering a whole lot of areas. 

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4 hours ago, Pall said:

Seems like its going beyond codeshare. I guess MH would want to have SQ to send more aircraft to KUL for MRO as well. Considering its a wide range partnership agreement covering a whole lot of areas. 

Yes, SQ has already sent their A380 to MH as they have the capability to do A380 heavy maintenance checks. If MH can get some A350 MRO work from SQ as well, it would be good as it helps with economies of scale. That will reduce its own MRO costs for their small A350 fleet.

With the current wide body market being so soft, MAB should try to snap up more A350s like what South African Airways is now doing. It seems like the Hainan Group's financial woes are still unsolved. LATAM is still not taking up their A350s. So if the price is right, MAB can start replacing their A333s one plane at a time, depending on what is available in the A350 preloved market.

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1 hour ago, flee said:

So if the price is right, MAB can start replacing their A333s one plane at a time, depending on what is available in the A350 preloved market.

That is if the man upstairs doesn't pull out the "We don't have enough money, economy is bad, previous administration drained the coffers dry bla bla bla" excuse. Or even worse, have MAB buy the planes through his intermediaries.

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4 minutes ago, Mohd Suhaimi Fariz said:

That is if the man upstairs doesn't pull out the "We don't have enough money, economy is bad, previous administration drained the coffers dry bla bla bla" excuse. Or even worse, have MAB buy the planes through his intermediaries.

I can sense your incessant hatred towards Dr. M and current administration. Why am I not surprised. So what is your idea in bringing MH up and running again?

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3 minutes ago, JuliusWong said:

I can sense your incessant hatred towards Dr. M and current administration. Why am I not surprised. So what is your idea in bringing MH up and running again?

Given the economic data that available, I think I'm warranted in my criticism of the old man and his merry men. A leopard never changes its spots, after all.

Anyways if it were up to me, at the top of my head, I'd forge more partnerships & JVs the way they're doing with SQ. Some might say that it will help the other airline, I'd say it gives MH a good source of revenue while at the same time minimizing costs because they don't have to contend with the operational costs that comes with actually flying to low yielding destinations. The days of airlines needing to fly everywhere is over.

Also, while I'm at it, I'd look into more improvements into the overall product so that it can be used as a USP for the airline. But don't get me wrong, I'm not talking about adding large frills - I'm talking about little tweaks & improvements in terms of the cabin atmosphere, crew training, catering, the booking experience, customer care etc. Just enough that it doesn't break the bank in terms of cost, but also enough that it provides a noticeable improvement over the current offering.

Thirdly, take a relook FY ops and see if they can do more with it - like actually having FY take over domestic routes so that MAB can focus on regional flights. If it makes business sense to do so, why not? Maybe even sell off MASwings to the Sabah/Sarawak government. If the federal government no longer want to properly support the RAS, why should MAB bore the brunt? Let the Sabah/Sarawak government run it.

 

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7 hours ago, Mohd Suhaimi Fariz said:

 Maybe even sell off MASwings to the Sabah/Sarawak government. If the federal government no longer want to properly support the RAS, why should MAB bore the brunt? Let the Sabah/Sarawak government run it.

Whether you are aware of it and/or care to recognize it, there were promises and obligations pledged to the two Bornean components at conception of the nation of Malaysia, and I suppose we should be grateful that all parties have largely adhered to the spirit (if not to the letter) of this

If I may opine, your "Let the Sabah/Sarawak government run it" assertion smacks of ignorance, and dare I say, sheer arrogance

I can only pray and hope that those in corridors of power, whichever their political inclination, do not entertain such thoughts of yours in the slightest bit, ever

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8 hours ago, BC Tam said:

Whether you are aware of it and/or care to recognize it, there were promises and obligations pledged to the two Bornean components at conception of the nation of Malaysia, and I suppose we should be grateful that all parties have largely adhered to the spirit (if not to the letter) of this

If I may opine, your "Let the Sabah/Sarawak government run it" assertion smacks of ignorance, and dare I say, sheer arrogance

I can only pray and hope that those in corridors of power, whichever their political inclination, do not entertain such thoughts of yours in the slightest bit, ever

Sarawak already stated that they are willing to take over MASwings, with reports stating such being released as early as 2015. So how is it ignorant to say "let them run MASwings?"

There's nothing arrogant about the statement, unless you already has preconceived notions about it.

https://sarawakvoice.com/2019/06/08/sarawak-minat-kuasai-maswings/

https://www.hmetro.com.my/mutakhir/2019/02/418953/sarawak-teliti-cadagan-syarikat-penerbangan-sendiri

https://www.theborneopost.com/2015/04/29/kerajaan-sarawak-dan-sabah-optimis-ambil-alih-maswings/

Edited by Mohd Suhaimi Fariz

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